Сергей Панов, Author at Finance Business Service

Switzerland and Austria dissolve the agreement withholding tax

Published: Sergey Panov | 14/11/2016 | news

Agreement withholding tax (WHT) between Switzerland and Austria, will be phased out from 1 January 2017, when the agreement between Switzerland and the EU on the automatic exchange of tax information comes into force. 11 November 2016, Switzerland and Austria signed an agreement to ensure a smooth transition between the two modes. Austrian authorities, it regulates the arrangements for the transmission of the final amount of taxes and shipping the latest voluntary agreement. "The provisions of a tax treaty withholding will be applied on all the facts and legal rights that materialize during the period of its validity," said the Swiss Federal Council.Withholding tax agreement between Switzerland and Austria came into force on 1 January 2013. It provided for the regularization of assets held in Switzerland Austrian taxpayers and taxation of income derived from these assets. Austrian taxpayers have been an option either to pay by WHT, imposed directly on their accounts and transferred anonymously to the Austrian authorities, or to make a voluntary disclosure. The Swiss Federal Council said that this model is "generally loses its sense of existence with the introduction of an...

A large number of emigrants refuse passports and green cards

Published: Sergey Panov | 11/11/2016 | news

1,380 US taxpayers give up their passports or green cards in the third quarter of 2016, which is the second highest quarterly report, according to Treasury statistics, published in the Federal Register. A record number of 1,426 people was seen in the third quarter of last year. In the second quarter of this year, only 508 people abandoned their passports or green cards, as compared to the total amount of the second quarter in 2015 of 460 citizens. Treasury said that so far this year, 3,046 taxpayers renounced their citizenship, that is, less than 3,221 citizens who have done so in the first three quarters of 2015, and 3,415 taxpayers have given up everything in 2014. Increasing the number of people who refuse citizenship, especially from 2013, coincided with increased actions by the Treasury and the Internal Revenue Service, to track US undeclared assets and held abroad income in particular, through the application of Foreign Account Tax Compliance Act (FATCA) and the requirement to file a report of foreign bank and financial accounts. According to the authorities, Americans who live abroad are becoming more aware of their US tax reporting obligations. In particular,...

Ireland discusses common EU corporate tax plan

Published: Sergey Panov | 10/11/2016 | news

Irish Finance Minister Michael Noonan said, that the government was exploring the details of the "very complex" proposal of the European Commission for the common consolidated corporate tax base. Noonan made the comments during his address to the Economic and Financial Committee on EU Affairs. He said: "This is a very difficult proposition. Each member state currently applies different rules on how tax revenue, which allowed deductions, credits issued and so on. Then we explore the details of the offer with other state parties." 25 October the European Commission published its latest proposals. It intends to initially introduce harmonized rules for the calculation of the tax base in all Member State. After that, tax revenues will be collected and distributed among the staff member at the approach of an apportionment of the form under which all proceeds will be distributed on the basis of factors such as the level of turnover, sales and employment. Noonan emphasized the Ireland's active role in the "global work to make the international system of corporation tax." He referenced on the participation of the government on the erosion OECD tax base, about project output from the...

UK and Colombia: Agreement about Avoidance of Double Taxation

Published: Sergey Panov | 09/11/2016 | news

UK and Colombia signed an agreement on avoidance of double taxation November 2, which is designed to support trade and investment by setting the upper limit of income tax on cross-border income. The agreement was signed by the Financial Secretary of the Treasury, Jane Ellison, and Colombian finance minister Mauricio Cárdenas. Income which was received through the international border, potentially exposed to tax in two countries, giving birth to the problem of double taxation. Agreement on avoidance of double taxation ensures that it is fixed, and the income earned in one country is taxed only once, not twice. Eliminating the risk of double taxation will give greater confidence for employees and companies between Britain and Colombia about which taxes they pay and where. The agreement will reduce barriers for international trade and investment, and promote growth and jobs. Also, an agreement of avoidance of double taxation includes provisions to help both countries work together to solve evasion and tax avoidance. The agreement provides that dividends accruing to the pension fund under certain circumstances, dividends will be subject to income tax at a rate of zero percent....

Australia declares tax returns in 2016

Published: Sergey Panov | 08/11/2016 | news

The Australian Tax Office (ATO) has stated that the highest level of online tax innings was issued in 2016. According to the latest ATO, more than three million Australians have filed their tax returns on time on the Internet via myTax. More than 6.5 million people filed through the tax agency. More than 100,000 people, which is used myTax, received a return on their submission until 31 October, that is, until the expiry of the deadline.Assistant Commissioner Graham White said: "We had a lot of answers to myTax and figures show how well our system works this year, 84 percent of people also told us that this system is easy to use." White added that it is still possible for the taxpayers, who have missed the deadline for filing claims to return, and stressed the need to do so as soon as possible. "If you are having problems with your tax return, we encourage you to contact us before we contact you. We can work with you to help you avoid penalties," he said.White also said that taxpayers with debt as a whole should pay the outstanding amount at 21 November. "The majority of registered agents have a program that allows them to file returns for their individual customers after the...

Germany and Costa Rica in order to avoid double taxation on January 1

Published: Sergey Panov | 07/11/2016 | news

German Ministry of Finance of 24 October confirmed that the double tax avoidance, the contract between Germany and Costa Rica, will be applied from January 1, 2017. The agreement, which was signed on 13 February 2014, is the first such agreement between Germany and Costa Rica, and contains the OECD standard for the exchange of information between the tax authorities of the two countries. The tax on dividends will generally be limited to 15 percent. However, the rate of five percent would apply if the dividend recipient is a company (other than partners), which directly owns at least 20 percent of the shares of the paying company. Income tax on the interest payments, as a rule, is limited to five per cent. At the same time, the withholding tax on royalties will be capped at 10 percent. Author: Olena Kutova senior lawyer of the Finance Business Service company ...

Seychelles: support for fiscal discipline

Published: Sergey Panov | 04/11/2016 | news

The International Monetary Fund (IMF) concluded that the Seychelles will require additional measures to achieve its goal of debt reduction. The Government has committed itself to the IMF, which will reduce the ratio of the Seychelles debt to gross domestic product (GDP) to below 50 percent by 2020. According to the IMF, it is necessary that the proceeds of the Seychelles did not exceed the costs by at least three to four per cent, excluding the cost of interest payments on its debt. Employees Fund said that "thanks to the tourists, economic growth in 2016 is projected to reach about 4.5 per cent. With the economy works well, a primary budget surplus is expected to amount to three percent of GDP this year." The surplus will be achieved despite the impact of various tax initiatives announced in the State in February 2016, "including the personal income tax (PIT) rate and an increase in pensions and the minimum wage. While the IMF noted that "the growth forecast for 2017 remains positive, agreed with the authorities on the need to make more progress in reducing poverty and ensuring that the benefits of economic growth is shared by all," he stressed that such a policy should...

The tax residency

Published: Sergey Panov | 04/11/2016 | blog

Against the background of the active introduction of more and more countries, the automatic exchange of financial accounting information provided by the multilateral agreement of the competent authorities ("The Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information", abbr. "MCAA") becomes apparent inevitability of joining in the near future Ukraine's this agreement. Recall that the MCAA involves automatic annual exchange of information on the accounts of non-residents between the competent (tax) authorities of countries that have signed the agreement. This fundamental question is the definition of tax residence of the account holder, as the information about it will be sent to the competent tax authorities of the country, the tax which he is a resident. Tax residency financial institution is determined primarily through independent determination of the account holder, on the basis of the information specified in the documentation to open an account. If the account holder declares the absence of residence for tax purposes, the financial institution determines its residency at the main office location. It is important to understand that...

ATR warns about a new property tax

Published: Sergey Panov | 03/11/2016 | news

1 November, the president of "Americans for Tax Reform" (ATR), Grover Norquist submitted a comment to the letter dated US Treasury Secretary Jacob Lew, counteracting the proposed decision, which will lead to an increase in the property tax (or "tax on death," as it is called). Under the current tax rules of real estate in accordance with Section 2704 of the Code of Internal Revenue, the fair market value of a share in the family business, which shall be held no current market - is not available on the basis of the test is "ready-seller willing-buyer". However, the proposed changes would allow the Internal Revenue Service in the future to produce much higher estimates, limiting the use of discounts. Norquist explained that "for families affected by the tax on the death of the two allowed discounts when determining the value of their property, lack of control discount and lack sold off. The lack of control discount can be claimed when the family has a minority ownership stake in the asset as a result of then a lower cost on the open market in holding the asset. The lack of marketability discounts apply when the asset is owned by the family and can not be easily eliminated due to...

Canada introduces legislation CETA

Published: Sergey Panov | 02/11/2016 | news

The Government of Canada has introduced legislation for a comprehensive economic and trade agreement (CETA) with the European Union (EU). CETA was signed at the 16th Summit between Canada and the EU on 30 October, the implementation was included in the bill in the House of Commons Canadian Minister of International Trade Chrystia Freeland 31 October. He also made an agreement in the House of Commons. Freeland said: "By ratifying the CETA Canada to once again demonstrate its leadership on progressive international trade. This is the gold standard agreement that paves the way for a new generation of trade agreements that give priority to public services, the environment and labor rights." After the entry into force of the agreement, 98 percent of EU tariff lines would be duty-free goods that occur in Canada. For seven years after the entry into force of CETA, 99 percent of tariff lines would be duty-free EU. Customs duties on industrial goods traded between the EU and Canada, will be eliminated after seven years, and almost 92 percent of agricultural and food products the EU will be exported to Canada duty free Author: Sergey Panovmanaging partner Finance Business...

Author: Сергей Панов